Fundamentals of selling customers for life through service 12th ed charles futrell

24 Reflect Back 26 The Future for Salespeople 27 Learning Selling Skills 27 Preparing for the 21st Century 28 Ethical Megatrend Shaping Sales and Business 30 Selling Is for Large and

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Rev Confirming Pages

Fundamentals of Selling

Customers for Life Through Service

T W E L F T H E D I T I O N

CHARLES M FUTRELL Texas A & M University

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FUNDAMENTALS OF SELLING: CUSTOMERS FOR LIFE THROUGH SERVICE

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the

or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written

consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic

storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the

Vice president and editor-in-chief: Brent Gordon

Publisher: Paul Ducham

Executive director of development: Ann Torbert

Managing development editor: Laura Hurst Spell

Editorial coordinator: Jonathan Thornton

Vice president and director of marketing: Robin J Zwettler

Marketing director: Rhonda Seelinger

Associate marketing manager: Jaime Halteman

Vice president of editing, design and production: Sesha Bolisetty

Project manager: Dana M Pauley

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Typeface: 10/12 Times New Roman

Compositor: Laserwords Private Limited

ISBN-13: 978-0-07-352999-8 (alk paper)

ISBN-10: 0-07-352999-0 (alk paper)

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To my Father, who calls us all to a life of unselfish love

for all people of our world

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v

ABOUT THE AUTHOR

Marketing Honor Society, recognized Charles for exceptional scholarly contributions to the sales profession in 2000 This is only the fourth time this recognition has been bestowed since its creation in 1988 Charles was the recipient of Sales & Mar- keting Executives International’s (SMEI) Educator of the Year

in 2007 Among many other things, SMEI founded Pi Sigma Epsilon (PSE), the only national, co-educational, professional fraternity in marketing, sales management, and selling PSE has more than 45,000 members at 123 campuses From January

1997 to August 2007, he was the Federated Professor in keting Studies at Texas A&M University

In the spring of 2001, Dr Futrell was chosen as a Fish Camp (Texas A&M University’s Freshman Orientation Camp) Namesake Fish Camps are named after faculty members who have made a significant impact on Texas A&M, and nomina- tions for the award are made by students, which makes it a very prestigious honor for instructors He has been an associate faculty adviser for Impact, a four-day Christian summer camp for entering freshmen involving 1,000 freshmen and 300 advis- ers Charles was on the leadership team of TAMU’s officially recognized Christian Faculty Network of over 250 scholars Finally, in 2010 Charles was selected by students to represent Texas A&M as Guest Coach for the baseball game against the University of Texas

Dr Futrell has written or co-written eight successful books for the college and professional audience Two of the most popular books are Fundamentals of Selling: Customers for Life through Service, twelfth edition, and ABC’s of Relation- ship Selling through Service, twelfth edition, both published

by McGraw-Hill/Irwin These books are used in hundreds of American and international schools Over 300,000 students worldwide have learned from Professor Futrell’s books

In 1997 Dr Futrell began using his Web site and group e-mails in his sales classes Students sign up for both a lecture period and lab time In each semester’s six labs, students are videotaped in activities such as making a joint sales call, panel interview, selling oneself on a job interview, product sales presentations, and various experiential exercises

Professor Futrell’s books, research, and teaching are based

on his extensive work with sales organizations of all types and sizes This broad and rich background has resulted in his being invited to be a frequent speaker, researcher, and consultant to industry

Charles M Futrell is a Professor of Marketing in the Mays

Business School at Texas A&M University in College Station,

Texas Texas A&M University has approximately 45,000

stu-dents with 5,000 business majors and 800 marketing majors

Dr Futrell has a B.B.A., M.B.A., and Ph.D in marketing He

is a former salesperson turned professor Before beginning his

academic career, Professor Futrell worked in sales and

market-ing capacities for eight years with the Colgate Company, The

Upjohn Company, and Ayerst Laboratories

Dr Futrell’s research in personal selling, sales ment, research methodology, and marketing management has

manage-appeared in numerous national and international journals,

such as the Journal of Marketing and the Journal of Marketing

Research An article in the summer 1991 issue of the Journal of

Personal Selling & Sales Management ranked Charles as one of

the top three sales researchers in America He was also

recog-nized in Marketing Education, Summer 1997, as one of the top

100 best researchers in the marketing discipline His work has

earned him several research awards

Presently Charles is conducting research on how faith relates

to salespeople’s organizational behavior He also is

investigat-ing how students’ faith helps them cope with the tremendous

stresses experienced in college life For his work, faith relates

to any and all faiths of the world Professor Futrell, as well as

others, feels there is a mental health crisis on America’s

col-lege campuses as well as in America’s general population Read

the newspaper and watch television for proof of the stresses

people are experiencing in their lives and the often

devastat-ing impact it has on their lives and the lives of others Please

contact him if you would like to work in either of these two

areas He would love to help you investigate these two

under-researched areas in your country and college, no matter what

part of the world

Professor Futrell served as the American Marketing ciation’s Chair of the Sales and Sales Management Special

Asso-Interest Group (SIG) for the 1996–97 academic year He was

the first person elected to this position Charles was elected

Finance Chair for the Sales SIG’s 1998–99 term In 2005, this

AMA group presented Charles with its Lifetime Achievement

Award for commitment to excellence and service in the area

of sales In 1999, the Association of Former Students awarded

him the Lowry Mays College and Graduate School of Business

Distinguished Teaching Award Mu Kappa Tau, the National

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vii

product Arguably, no other personal selling textbook presents

a sales process or system in a logical sequence: from planning and the approach, to closing and follow-up for exceptional customer service Scores of sales personnel in the industry today comment on how this textbook reflects what they do on sales

calls with prospects and customers The goal of Fundamentals

of Selling has always been to demonstrate to students the order

of steps within the selling process; provide numerous examples

of what should be in each step; and how the steps within the selling process interact with one another If a student under- stands the sales system by the end of the course, the class has successfully contributed to their education

Fundamentals of Selling is a market leader in sales classes

worldwide, and its materials can be found in four international versions Numerous sales trainers around the globe use our selling process to prepare their salespeople

The Uniqueness of Fundamentals of Selling The appendix to Chapter 1: “The Golden Rule of Personal Sell- ing as Told by a Salesperson,” reveals this textbook’s unique central focus—serving others unselfishly To aid in this message, the acclaimed worldwide Golden Rule was incorporated

in order to stress treating others as you would like to be treated

in the marketplace and workplace

The textbook’s foundation is based upon service Its

cor-nerstone is love (caring) of others Fundamentals of Selling ’s

values are supported by the pillars of an organization’s—and individual’s—integrity, trustworthiness, and character (see Exhibit 3.13) The center of business and personal life revolves around personal interactions; as a result, a theme of this textbook is that ethical service, based upon truth between people, builds strong long-term relationships

Fundamentals of Selling seeks to prepare people for the 21st

century’s demand for moral and ethical treatment—a universal declaration for human rights It is a calling for a higher standard than what previously exists in many organizations worldwide The General Assembly of the United Nations has proclaimed that humans possess reason and conscience and should act toward one another in a spirit of brotherhood Organizations should not be engaged in war within the marketplace, but com- mitted to serving mankind

Many people seem to separate their personal life from their business life Some individuals, when entering the business

Welcome to the Twelfth Edition

of Fundamentals of Selling

A megatrend in today’s business world involves going to

extreme efforts to meet consumer needs Organizations cannot

afford to lose customers It is always easier to sell to a satisfied

customer than an unsatisfied one The cost of acquiring a new

customer is higher than keeping a present customer

Obtaining new customers and retaining present ones are the main challenges of salespeople Increase in sales and profits

is up to the sales personnel—the people who represent their

employers through interacting with present or prospective

cus-tomers Sales professionals strive to create a long-term business

relationship, which implies that personal relationships with

cli-ents are formed Consumers want to buy from someone who

cares about their needs People do business with the people they

trust, and they trust the people they know

This textbook focuses on taking care of the customer through exceptional customer service Service means making a contri-

bution to the welfare of others Salespeople exist to help others

New Additions, Expansions, and

Reexaminations to This Edition

Using this textbook each year in my sales classes has resulted in

a constant study of the text by students who provide feedback on

its content Present users of the textbook have offered detailed

critiques providing direction for revision of the book, as have

the reviewers noted in the Acknowledgments The relationships

and interactions in the various steps of the selling process have

been carefully examined to form a more seamless flow from

one chapter to the next, and special emphasis is placed on the

importance of ethical behavior in working with prospects and

customers Other changes include:

■ Many examples with some illustrated using new photographs.

■ New videos, including national companies such as Johnson

& Johnson and Hormel.

■ Updates in the PowerPoint's, instructors manual, and test

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viii Preface

Basic Organization of the Book

The publisher and I worked hard to ensure that Fundamentals

of Selling would provide students with the basic foundation for

understanding all major aspects of selling The 17 chapters in the text are divided into four parts:

■ Selling as a Profession Emphasizes the history, career, rewards, and duties of the professional salesperson and illustrates the importance of the sales function to the organization’s success It also examines the social, ethical, and legal issues in selling

■ Preparation for Relationship Selling Presents the

back-ground information salespeople use to develop their sales presentations

■ The Relationship Selling Process At the heart of this book,

this part covers the entire selling process from prospecting

to follow-up State-of-the-art selling strategies, practices, and techniques are presented in a “how-to” fashion

■ Managing Yourself, Your Career, and Others The

impor-tance of the proper use and management of one’s time and sales territory is given thorough coverage Two chapters cover the fundamentals of managing salespeople For many students, this is their only exposure to what a sales manager does in this challenging job

Special to This Edition

customer underscores the Golden Rule of Personal Selling—a sales philosophy of unselfishly treating others as you would like

to be treated without expecting reciprocity This is how to build long-term relationships with customers

The Tree of Business Life Icon Beginning with Chapter 3,

The Tree of Business Life icon is used to remind the reader of one of the main themes of the book This theme emphasizes that

by providing ethical service you build true relationships This section was developed in hopes of having the reader consider how a salesperson would incorporate ethical service into the chapter’s topic

each chapter to help reinforce the Tree of Business Life The combination of the Golden Rule and the “Tree” guidelines for business and selling form the core theme of this textbook

Unselfishly treating prospects/customers as you would like

to be treated without expecting something in return results in ethical service which builds true long-term relationships If you think about it, this is how you build true personal friendships

Why not build your business relationships on this rock?

Comprehensive Cases At the end of the book are

compre-hensive sales cases These cases approach sales from the broader sales management perspective

world, tend to follow the example of others to generate sales

The use of this textbook in your classroom may provide some

students with a final opportunity to discuss how to enter the rat

race without becoming a rat

Fundamentals’ Approach

Fundamentals of Selling was conceived as a method of

pro-viding ample materials that allow readers to construct their

own sales presentations after studying the text This allows

the instructor the flexibility of focusing on the “how-to-sell”

approach within the classroom Covering the basic

founda-tions for understanding the concepts and practices of selling in

a practical, straightforward, and readable manner, it provides

students with a guide to use in preparing sales presentations and

role-playing exercises

The Philosophy behind This Book

The title should help you understand the philosophy of this

book A student of sales should understand the fundamentals—

the basics—of personal selling All of them I do not advocate

one way of selling as the best route to success! There are many

roads to reaching one’s goals

I do feel a salesperson should have an assortment of

sell-ing skills and should be very knowledgeable, even an expert, in

the field Based on the situation, the salesperson determines the

appropriate actions to take for a particular prospect or customer

No matter what the situation, however, the basic fundamentals

of selling can be applied

There is no place in our society for high-pressure,

manipula-tive selling The salesperson is a problem solver, a helper, and

an adviser to the customer If the customer has no need, the

salesperson should accept that and move on to help another

per-son or firm If the customer has a need, however, the

salesper-son should and must go for the sale All successful salespeople I

know feel that once they determine that the customer is going to

buy someone’s product—and that their product will satisfy that

customer’s needs—it is their job to muster all their energy, skill,

and know-how to make that sale That is what it’s all about!

It is my sincere hope that after the reader has studied this

book, he or she will say, “There’s a lot more to selling than I

ever imagined.” I hope many people will feel that this material

can help them earn a living and that selling is a great occupation

and career

At the end of the course, I hope all the students will have

learned how to prepare and give a sales presentation by visually,

verbally, and nonverbally communicating their message I know

of no other marketing course whose class project is so

challeng-ing and where so much learnchalleng-ing takes place

Finally, I hope each student realizes that these new

commu-nication skills can be applied to all aspects of life Once learned

and internalized, selling skills will help a person be a better

communicator throughout life

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Preface ix

accom-panied by captions that describe sales events and how they relate to chapter materials

Chapter Topics and Objectives Each chapter begins with a

clear statement of learning objectives and an outline of major chapter topics These devices provide an overview of what is

to come and can also be used by students to see whether they understand and have retained important points

begins with a real-life challenge sales professionals face The challenge pertains to the topic of the chapter and will heighten students’ interest in chapter concepts The challenge is resolved

at the end of the chapter, where chapter concepts guiding the salespersons’ actions are highlighted

when faced with challenges, use innovative ideas to sell

tips for use in developing their role-plays

first “What should I do?” and “How should I do it?” are two questions frequently asked by students in developing their role-plays To enhance students’ awareness and understanding, many exhibits have been included throughout the book These exhibits consolidate key points, indicate relationships, and visually illustrate selling techniques

Chapter Summary and Application Questions Each chapter

closes with a summary of key points to be retained The application questions are a complementary learning tool that enables students to check their understanding of key issues, to think beyond basic concepts, and to determine areas that require further study The summary and application questions help students discriminate between main and supporting points and provide mechanisms for self-teaching

Key Terms for Selling/Glossary Learning the selling

voca-bulary is essential to understanding today’s sales world This is facilitated in three ways First, key concepts are boldfaced and completely defined where they first appear in the text Second, each key term, followed by the page number where it was first introduced and defined, is listed at the end of each chapter Third, a glossary summarizing all key terms and definitions appears at the end of the book for handy reference

Ethical Dilemma These challenging exercises provide

stu-dents an opportunity to experience ethical dilemmas faced

in the selling job Students should review the definition and explanation of ethical behavior in Chapter 3 before discussing the ethical dilemmas

14.3 can be used independently or with eight of the videos

accom panying this book Each of the eight cases highlights a

tough ethical dilemma often faced by sales personnel in today’s

com petitive marketplace Use any or all of these cases to

emphasize ethics in your sales class

Sales Call Role-Plays and Videos The first three of the four

role-plays in Appendix A at the back of this book have videos

created incorporating our selling process The two people

featured in the three role-plays completed my selling course

The professional selling materials in Chapters 8, 9, 10, 11, 12,

and 13 do a great job in illustrating Actually used in my classes

by hundreds of students, these role-plays are created from

information used by today’s top sales forces

Sell Yourself on a Job Interview This all-time favorite

role-play is in Appendix B with other experiential exercises For

years I have used this student pleaser in both my personal selling

and sales management classes When students see themselves

on video they quickly realize what needs to be done for a

professional interview You have to try this exercise one time!

Student Application Learning Exercises (SALES) Chapters

directly related to creating the role-play have SALES that aid

students in better understanding how to construct this popular

class project These were first used in my classes in the fall of

1997 Students unanimously felt they were great in helping

them correctly construct their role-plays SALES appear at the

end of Chapters 4, 6A, 8, 10, 11, 12, and 13

thr oughout so students will better understand that there are sales

jobs in all organizations—business, service, and nonprofit

exer-cises help students to better understand themselves and/or the

text material Many can be done in class or completed outside

and discussed in class

written by friends and colleagues from countries around the

world They are at the back of the book

shows the use of technology and automation in selling and

servicing prospects and customers

Text and Chapter Pedagogy

Many reality-based features are included in the twelfth edition

to stimulate learning One major goal of this book is to offer

better ways of using it to convey sales knowledge to the reader

To do this, the book includes numerous special features:

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x Preface

exer-cises, examples of selling techniques, and industry sales training programs show students how to prepare their own role-plays, and how textbook content relates to the sales world Several of the student’s video role-plays were produced especially for this book They take people through the 10-step selling process

course, chapter outlines, commentaries on cases, answers to everything—plus much more—the Instructor’s Manual is a large, comprehensive time-saver for teachers

is the Test Bank We gave the Test Bank special attention during the preparation of the twelfth edition because instructors desire test questions that accurately and fairly assess student competence in subject material The Test Bank provides hundreds of multiple-choice and true/false questions Each question has been rated for level of difficulty and designated with page number in the text to locate the correct answer so that instructors can provide a balanced set of questions for student exams

can access downloadable versions of instructor support rials, as well as a student tutorial and student self-assessment quizzes

■ A PowerPoint Presentation A state-of-the-art program offering hundreds of lecture slides These slides can be cus- tomized for any course They are great!

■ Computerized Test Bank The Computerized Test Bank

allows instructors to select and edit test items from the printed Test Bank and to add their own questions Various versions of each test can be custom printed

■ Electronic Version of the Instructor’s Manual

students to go beyond the textbook and classroom to explore

what’s happening in the real world Projects can be altered

or adapted to the instructor’s school location and learning

objectives for the class

sub-stantive cases for student analysis and class discussion These

cases provide an opportunity for students to apply concepts

to real events and to sharpen their diagnostic skills for sales

problem solving Comprehensive cases are found in the back

of the book

As you see, the publisher and I have thoroughly considered

how best to present the material to readers for maximizing their

interest and learning Teacher, reviewer, and student response to

this revision has been fantastic They are pleased with the

read-ability, reasonable length, depth, and breadth of the material

You will like this edition better than the previous one

Teaching and Learning Supplements

McGraw-Hill/Irwin has spared no expense to make

Funda-mentals of Selling the premier text in the market today Many

instructors face classes with limited resources, and

supple-mentary materials provide a way to expand and improve the

students’ learning experience Our learning package was

specif-ically designed to meet the needs of instructors facing a variety

of teaching conditions and for both the first-time and veteran

instructor

me any time with questions, comments, or just to say “hello.”

Numerous instructors, students, and industry sales trainers

worldwide contact me each year If you are teaching the course,

especially for the first time, and want me to look over your

syllabus, I am here to serve

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xi

ACKNOWLEDGMENTS

Working with the dedicated team of professionals

at McGraw-Hill/Irwin, who were determined to

produce the best personal selling book ever, was

a gratifying experience

In overseeing this revision, Publisher Paul Ducham, Sponsoring Editor Laura Spell, and

Editorial Coordinator Jonathan Thornton

offered ideas for improvements to the twelfth

edition package Keri Johnson oversaw the

selection of new photographs for this edition

Project Manager Dana Pauley ably guided

man-uscript and page proofs through the production

process Designer Matt Diamond updated the

interior to make the visual elements exciting for

students and instructors

Another group of people who made a major contribution to this text were the sales experts

who provided advice, reviews, answers to

ques-tions, and suggestions for changes, inserques-tions,

and clarifications I want to thank these

col-leagues for their valuable feedback and

sugges-tions: Dan Cassler, University of Houston; Paul

W Clark, Indiana State University; Fred H

Fusting, Loyola University Maryland; Virginia

H Johnson, University of Alabama; Les

Led-ger, Central Texas College; Barbara L Sleeper,

Dallas Baptist University

I also want to again thank those people who contributed to earlier editions, because their

input is still felt in this twelfth edition They

were Katrece Albert, Southern University;

Ramon A Avila, Ball State University; Duane Bachmann, Central Missouri State University;

Ames Barber, Adirondack Community lege; John R Beem, College of DuPage; Dawn

Col-Bendall-Lyon, University of Montevallo; ton J Bergstein, Pennsylvania State University; George Boulware, Lipscomb University; Chris Brandmeir, Highline Community College; Dan Cassler, University of Houston; Michael Cicero, Highline Community College; Norman Cohn,

Milwaukee Tech; Marjorie Cooper, Baylor

Uni-versity; Gerald Crawford, University of North

Casper College; Casey Donoho, Northern

North Dakota; Earl Emery, Baker Junior lege of Business; O C Ferrell, Colorado State University; Fred H Fusting, Loyola College in Maryland; Douglas E Gatton, Dallas Baptist University; Myrna Glenny, Fashion Institute of Design and Merchandising; Ric Gorno, Cypress College; David Gripp, Milwaukee Area Techni- cal College; Kevin Hammond, Community Col-

Marion Technical College; Jon Hawes, versity of Akron; Deborah Jansky, Milwaukee

Lavidge; Dennis Kovach, Community College

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of Allegheny County; Deborah Lawe, San

Virginia Polytechnic Institute & State

Univer-sity; Lynn J Loudenback, New Mexico State

University; Michael L Mallin, The University

of Toledo; Leslie E Martin, Jr., University of

Wisconsin–Whitewater; Brian Meyer, Mankato

State University; Ken Miller, Kilgore College;

Harry Moak, Macomb Community College;

Dick Nordstrom, California State University–

Becky Oliphant, Stetson University; Roy Payne,

Purdue University; Charles E Peterson,

Uni-versity of Connecticut; Robert Piacenza,

Madi-son Area Technical College; Alan Rick, New

England Institute of Technology; John

Ronch-etto, University of San Diego; Jeff Sager,

Uni-versity of North Texas; Donald Sandlin, East

Los Angeles College; Todd Saville, Kirkwood

Commu nity College; Allen Schaefer, Missouri

Miami-Coral Gables; Joseph Schubert,

Dela-ware Technical & Community College; Camille

P Schuster, Xavier University ; Lisa Sciulli,

Indiana University of Pennsylvania; Richard

Shannon, Western Kentucky University; Dee

Smith, Lansing Community College; Robert

Smith, Illinois State University; Ed Snider,

Mesa Community College ; Amita Sood,

Stull, Utah State University; Robert Tangsrud,

Jr., University of North Dakota; Albert J Taylor,

Austin Peay State University; James L Taylor,

University of Alabama; Ruth Taylor, Southwest

Texas State University; Robert Thompson,

Indi-ana State University; Rollie Tilman, University

of North Carolina at Chapel Hill; John Todd,

University of Tampa; Glenna Urbshadt, British

Columbia Institute of Technology; Bruce

Wars-leys, Trend Colleges; Dan Weilbaker, Northern

Syra-cuse University; Timothy W Wright, Lakeland

Community College; and George Wynn, James Madison University

I would also like to thank the many Texas A&M students who have used the book in their classes and provided feedback Thanks also to the many instructors who call me each year

to discuss the book and what they do in their classes While we have never met face-to-face,

I feel I know you Your positive comments, encouragement, and ideas have been inspira- tional to me

In addition, salespeople and sales managers have provided photographs, selling techniques, answers to end-of-chapter exercises and cases, and other industry materials that enrich the reader’s learning experience They include the following:

Kim Allen, McNeil Consumer Products

Michael Bevan, Parbron International of

Can-ada; Richard Ciotti, JCPenney Company; John

Croley, The Gates Rubber Company; Terry

and Paul Fingerhut, Steamboat Party Sales,

Gary Grant, NCR; Jerry Griffin, Sewell

Hanes Corporation; Debra Hutchins, Sunwest

Bank of Albuquerque; Mike Impink, Aluminum

American Hospital Supply Corporation; Morgan Jennings, Richard D Irwin, Inc ; Patrick Kam- lowsky, Hughes Tool Company; Cindy Kerns, Xerox Corporation; Alan Killingsworth, FMC

Corporation; Santo Laquatra, SmithKline cham; Stanley Marcus; Gerald Mentor, Richard

Bee-D Irwin, Inc ; Jim Mobley, General Mills, Inc ;

George Morris, Prudential Insurance pany of America; Vikki Morrison, First Team Walk-In Realty, California; Greg Munoz, Dow Chemical Company; Kathleen Paynter, Camp-

xii Acknowledgments

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D Irwin, Inc ; Jack Pruett, Bailey Banks and

Bruce Scagel, Scott Paper Company; Linda

Slaby-Baker, The Quaker Oats Company;

San-dra Snow, The Upjohn Company; Matt

Suffo-letto, International Business Machines ( IBM ) ;

Ed Tucker, Cannon Financial Group, Georgia

For the use of their selling exercises and sales management cases, I am especially grateful to

these people:

■ Gerald Crawford, Keith Absher, Bill Stewart,

University of North Alabama

■ George Wynn, James Madison University

I hope you learn from and enjoy the book I enjoyed preparing it for you Readers are urged

to forward their comments on this text to me I wish you great success in your selling efforts Remember, it’s the salesperson who gets the customer’s orders that keeps the wheels of industry turning America cannot do with out you

Finally, I wish to thank the sales trainers, salespeople, and sales managers who helped teach me the art of selling when I carried the sales bag full time I hope I have done justice to their great profession of selling

Charles M Futrell c-futrell@tamu.edu http://futrell-www.tamu.edu

Acknowledgments xiii

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xiv

GUIDED TOUR

A goal of Fundamentals of

Selling is to teach students

the order of steps within

the selling process;

pro-vide numerous examples

of what should be in each

step; and demonstrate

how the steps within the

selling process interact

within one another in a

logical, seamless flow

Arguably, no other

per-sonal selling textbook

presents a sales process

in such a manner from

planning the approach,

to closing and follow-up

for exceptional customer

service Futrell’s Selling

Process trains readers in a

specific, yet generic,

step-by-step selling process

that is universal in nature

Once learned, a student

has the basic background

to sell any product

As the sales manager of a printing company, you are about to invest in a car leasing program that involves 18 company cars for your sales staff Together with your comptroller, you have examined several leasing programs You have narrowed down your selection to two leasing companies that offer very similar terms You are meeting with the president of Equilease, a company with which you have never done business You know from your own prospect ﬁ les that one of your sales representatives has tried to call on the purchasing manager of Equile- ase before to get some of their printing business; however, he could not sell the account

As you meet with the president for lunch, you gently steer the conversation in the tion of printing services Since he is very knowledgeable about printing services and prices, you ask him about ballpark prices charged by his existing supplier You believe you could provide his company with higher-quality service at a better price

Since the president of Equilease is in a good mood, you think about setting up a win–win situation You are considering making this offer: Let’s make this a double win I’ll give you

100 percent of our leasing business if you’ll consider giving us 50 percent of your printing business Fair enough?

Is there an ethical conﬂ ict in this situation? Would it be ethical to propose such a deal?

Sales personnel constantly are involved with social, ethical, and legal issues Yet if you think about it, everyone is—including you If you found a bag full of $100 bills lying on the side of the road, would you keep it? Would you say you were sick to Have you ever broken the speed limit? Have you ever gone home with one of your employer’s pens in your purse or jacket pocket?

These sorts of questions may be difﬁ cult for the average person to answer Some people will respond with an unequivocal yes or no Others may mull it over a while

Still others may feel compelled to say “it depends” and qualify their response with a

“yes, but ” or a “no, but ” Maybe that was what you did with the Sales lenge feature

Newspapers, radio, and television frequently have news stories of individuals and organizations involved in both good and bad practices This chapter addresses many of the important social, ethical, and legal (SEL) issues in selling It begins by discussing management’s social responsibilities Then it examines ethical behavior followed by the ethical issues involved in dealing with salespeople, employers, and personnel follow ethical selling practices

An organization’s environment is a major infl uence on how the fi rm sells its ucts As pictured in Exhibit 3.1 , social, ethical, and legal (SEL) infl uences and con- siderations surround the fi rm’s product, price, place, and promotion

Due to the environmental turmoil in the world of commerce, this chapter is ably the most important in the entire book Let’s begin by asking, “Does an organization have any responsibilities to society?”

In one sense, the concept of corporate social responsibility is easy to understand; it means distinguishing right from wrong and doing right It means being a good cor-

porate citizen The formal deﬁ nition of social responsibility is management’s

obli-gation to make choices and take actions that contribute to the welfare and interests of society as well as to those of the organization

FACING A SALES CHALLENGE FACING A SALES CHALLENGE

SOCIAL, ETHICAL, AND LEGAL INFLUENCES

MANAGEMENT’S SOCIAL RESPONSIBILITIES

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The Facing a Sales Challenge

fea-ture at the beginning of each chapter presents students with real-life chal-lenges sales professionals face The challenge pertains to the topic of the chapter and will heighten students’

interest in chapter concepts The lenge is then resolved at the end of the chapter where chapter concepts guiding the salesperson’s actions are highlighted

chal-xiv

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xv

Ethics in personal selling is a mary focus of this text The Ethical

pri-Dilemma boxes in each chapter are

meant to be challenging exercises that provide students with an oppor-tunity to experience ethical dilemmas faced in the sales field

ETHICAL DILEMMA

Mexico Here I Come

As you come to the end of your presentation, you

real-ize one of your best customers—John Adams—may not buy John and you have become friends over the last three

years Losing this sale will result in your missing out on a

$500 bonus, forfeiting a chance to win a trip to Mexico, and

failing to reach your sales quota for the year.

When you ﬁ nish, John says, “We can’t buy.” You then

explain your situation to John He says, “Well, why don’t

but before it’s time to pay for it, I will ship it back to your

of your customers That way you’ll get credit for the sale.”

your sales quota he will also look good and be rewarded.

What do you do? In selecting your action, consider the discussion of ethical behavior in Chapter 2.

1 Accept John’s offer without consulting your boss and send the merchandise to his store—in turn, receiving a your boss for making the sale and reaching your sales quota.

2 Talk to your boss about the situation and explain John’s offer Let your boss be the ultimate decision maker (taking responsibility instead of you), knowing that he will tell you to take the “sale” from John.

3 Thank John for trying to be a supportive friend but decline his offer because it would not be right to falsify sales for your own beneﬁ t.

fut81128_ch01_002-042.indd 32 8/26/08 5:21:21 PM

Creativity and innovation are

char-acteristics that any successful

salesperson has Making the Sale

boxes illustrate how salespeople,

when faced with challenges, use

new ideas to sell their products

Chapter Two Relationship Marketing: Where Personal Selling Fits 55

MAKING THE SALE

Salespeople Have Made America Great!

He came on muleback, dodging outlaws as he went, with

a pack full of better living and a tongue full of charms

For he was the great American salesman, and no man ever had a better thing to sell.

He came by rickety wagon, one jump behind the neers, carrying axes for the farmer, fancy dress goods for his

pio-he was tpio-he great practical democrat, spreader of good things among more and more people.

He came by upper berth and dusty black coupe, selling tractors and radios, iceboxes and movies, health and leisure, abundance, Mr High-Standard-of-Living in person.

He rang a billion doorbells and enriched a billion lives

Without him there would be no American ships at sea, no busy factories, and fewer jobs For the great American salesman is the great American civilizer, and everywhere he goes

he leaves people better off 5

fut81128_ch02_043-069.indd 55 8/26/08 5:23:43 PM

Every salesperson will be faced with unique selling issues, whether it be a specific client objection or negotiating

a sale The Selling Tips boxes provide

extra tips for students to use in certain situations that require adept commu-nication skills These boxes also help

to create additional class role-plays

SELLING TIPS

Using Trial Closes

The trial close is an important part of the sales

presenta-tion It asks for the prospect’s opinion concerning what

you have just said The trial close does not ask the person to

buy directly Here are examples:

■ How does that sound to you?

■ What do you think?

■ Are these the features you are looking for?

■ That’s great—isn’t it?

■ Is this important to you?

■ Does that answer your concern?

■ I have a hunch that you like the money-saving features of this product Did I guess right?

■ It appears that you have a preference for this model Is this what you had in mind?

■ I can see that you are excited about this product On a scale from 1 to 10, how do you feel it will ﬁ t your needs?

■ I notice your smile What do you think about ?

■ Am I on the right track with this proposal?

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Reynolds helps dealerships become more effective at retaining new car buyers as service customers and building loyalty among the customers to keep them coming back They help dealers to better understand their customer base, figure out who their most profitable customers are, and then target them with focused incentives to get the customers back into the dealerships when service is needed.

The Opportunity Bob Sherman, a Minneapolis-area sales associate with Reynolds, and his regional sales manager, Tim O’Neill, along with Chuck Wiltgen, marketing specialist, met with representatives from Ben Frothingham’s American Ford Dealership American Ford was in need of a new retention plan to boost service sales, and Reynolds provided them with one The group effectively presented their marketing strategies and tied up the deal successfully.

Sherman established the contact with American Ford’s service department and discussed their options His next call was more promising and he talked with them more about a new initiative from Ford called “Quality Care Maintenance.” They gave him negative feedback, so he suggested that they meet with his boss, Tim O’Neill

By the close of the third meeting, American Ford agreed to have reports run on their customer retention rate and their database system.

Precall Planning Before the call, Sherman, O’Neill, and Wiltgen discussed details of the opportunity, roles each would play, and any possible concerns that they anticipated They decided that Sherman would discuss the reports with the customer, and Chuck would be the implementation guy Tim would be there for backup Because they had been working together so long, they basically already knew how to present their information.

Stage 1: Report After two reports were run to determine just who the dealership’s customer base was, the three met with Carol Bemis, the dealership’s new parts and service director, and Brad Greenberg, service manager Sherman opened the meeting by recap- ping the set of mutual expectations and handing out copies of the reports Sherman

CASE 2.1

Reynolds & Reynolds

TEAM SELLING

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Cases for Analysis appear at the

end of each chapter, plus the back

of the book has several sive sales cases for those wanting

comprehen-to emphasize both personal selling and sales management within the course

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xvii

Another helpful tool included for use in Fundamentals of Selling, 12th edition is the text’s

appendixes Responding to the need for more practical resources, the five appendixes provide students with additional role-plays, ACT! Express exercises, sales cases, global selling illustrations, and answers to chapter crossword puzzles

Appendix A:

Sales Call Role-Plays

How would you like to take a computer class without ever using a computer? To learn, you need an instructor, a textbook, and a computer To learn to sell, you need an instructor, a textbook, and one or more role-plays Role-plays are where the true learning takes place, where you see how to use all of the classroom instruction materials your instructor and textbook provided

I have worked with thousands of people to help them develop role-plays similar to those presented in a sales training class The following role-plays have been created from actual organizations’ sales information provided to their salespeople The names of the companies and their products have been changed to provide anonymity

You are a salesperson for a multi-billion-dollar consumer goods manufacturer Today

of 20 large grocery stores You have known Amy since last year about this time, when she became the buyer Since then you have called on Amy about every month currently carries, and create marketing plans for your major items

Amy’s ofﬁ ce is in the largest city in your area ABC currently carries about 100 different products of yours, with each of these 100 products available in various sizes and ﬂ avors Thus ABC has 450 SKUs (stock-keeping units) of yours that it sells

(Each item carried in the store is given a tracking, or stock-keeping, number referred

to as an SKU.) You will be selling Amy one size of a new ready-to-eat cereal For your role-play choose any cereal in your favorite grocery store to use in this exercise Carefully the FAB s into your presentation as if this were a new cereal The following information relates to the role-play’s product, promotion, pricing, and sales objectives

Select any ready-to-eat (RTE) cereal of your choice to use in your role-play.

■ Ready-to-eat cereal is the largest dry grocery category, with sales of $8 billion

The following information is based on AC Nielsen information and test markets.

■ 93 percent of consumers will buy your cereal in addition to their normal cereal

■ Your cereal focuses on people nine years of age to older adults

ROLE-PLAY ONE:

CONSUMER SALES ROLE-PLAY ONE:

CONSUMER SALES

Product Description Product Description

Category/Segment Performance Category/Segment Performance

Appendix A: Sales Call Role-Plays

provide complete information on four sales situations that students can use

to create their class role-plays The first three role-plays have an accompany ing video illustrating our ProSelling Pro- cess using Professor Futrell’s students selling a consumer or business product

Appendix B: Personal Selling Experiential Exercises

■ Sell Yourself on a Job Interview explains how to incorporate sales communication and niques into a job interview This is a favorite role-play of students

tech-■ How to Create a Portfolio shows students how to create information for the job interview lighting their abilities, accomplishments, and experiences

high-■ Sales Team Building is great for the instructor wanting to incorporate a team selling assignment into class

■ What’s Your Style has students determine their core personality style in order to become a better communicator

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xviii

GUIDED TOUR

Appendix C: Comprehensive Sales Cases are provided especially for the class wanting to

combine personal selling and sales management

Appendix D: Selling Globally

illustrates 14 situations in various

countries in the world for class

3 In Germany, he arrives 10 minutes late for an important meeting

4 In Japan, he accepts the business cards of his hosts and, without looking at them, puts them in his pocket

How many orders is Harry Slick likely to get? Probably none, although his pany will face a pile of bills

International business success requires each businessperson to understand and adapt

to the local business culture and norms Here are some rules of social and business quette that managers should understand when doing business in other countries

France Dress conservatively, except in the south where more casual clothes are worn Do not refer to people by their ﬁ rst names—the French are formal with strangers

Germany Be especially punctual An American businessperson invited to someone’s home should present ﬂ owers, preferably unwrapped, to they extend their hands before extending yours

Italy Whether you dress conservatively or go native in a Giorgio Armani suit, keep in mind that Italian businesspeople are style conscious

with Italian bureaucracies

United Toasts are often given at formal dinners If the host honors you

Kingdom with a toast, be prepared to reciprocate Business entertaining is done more often at lunch than at dinner

Saudi Although men kiss each other in greeting, they never kiss a woman

Arabia in public An American woman should wait for a man to extend his hand before offering hers When a Saudi offers refreshment, accept; declining it is an insult

Japan Don’t imitate Japanese bowing customs unless you understand them thoroughly—who bows to whom, how many times, and when

It’s a complicated ritual Presenting business cards is another ritual

WHEN IN ROME,

DO WHAT THE ROMANS DO

WHEN IN ROME,

DO WHAT THE ROMANS DO

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Appendix E: Answers to Crossword Puzzles are given for puzzles that are at the back of each

chapter

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xix

Supplements

The Online Learning Center houses

resources for both students and tors Students will find quizzes, key terms, chapter outlines, and chapter summaries on the Web site Instruc-tors can access materials such as the Instructor’s Manual, PowerPoint slides, Test Bank, and Computerized Test Bank, and can also find a link to McGraw-Hill’s course management system, PageOut

Videos:

ProSelling Videos provide several hours of role-plays,

exercises, examples of selling techniques, and

indus-try sales training programs These segments illustrate

how students will incorporate text materials into

creating their class sales role-plays and show how

textbook content relates to the sales world There are

also several segments that are new to the twelfth

edi-tion video package that give real-life profiles of

sales-persons in different companies and industries

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PART I Selling as a Profession 3

1 The Life, Times, and Career of the Professional

Salesperson 4

2 Relationship Marketing: Where Personal Selling

Fits 43

3 Ethics First Then Customer Relationships 70

Preparation for Relationship Selling 109

4 The Psychology of Selling: Why People Buy 110

5 Communication for Relationship Building: It’s Not

All Talk 146

6 Sales Knowledge: Customers, Products,

Technologies 180

PART II BRIEF TABLE OF CONTENTS

PART III The Relationship Selling Process 225

7 Prospecting—The Lifeblood of Selling 226

8 Planning the Sales Call Is a Must! 254

9 Carefully Select Which Sales Presentation Method

Appendix B: Personal Selling Experiential

Exercises 566 Appendix C: Comprehensive Sales Cases 584 Appendix D: Selling Globally 601

Appendix E: Answers to Crossword Puzzles 611 Glossary of Selling Terms 617

Notes 627 Photo Credits 632 Index 634

PART IV

10 Begin Your Presentation Strategically 303

11 Elements of a Great Sales Presentation 335

12 Welcome Your Prospect’s Objections 368

13 Closing Begins the Relationship 404

14 Service and Follow-Up for Customer Retention 439

xx

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Personal Selling Today 6

How Some Salespeople Are Viewed 6 What about You? 7

A New Definition of Personal Selling 7

Think of Your Grandmother 7 The Golden Rule of Personal Selling 7

Salesperson Differences 8 Everybody Sells! 8

What Salespeople Are Paid to Do 9

Why Choose a Sales Career? 10

Service: Helping Others 10

A Variety of Sales Jobs Are Available 10 Freedom of Action: You’re on Your Own 13 Job Challenge Is Always There 14

Opportunities for Advancement Are Great 14 Rewards: The Sky’s the Limit 15

You Can Move Quickly into Management 16

Is a Sales Career Right for You? 16

A Sales Manager’s View of the Recruit 16 Success in Selling—What Does It Take? 17

S—Success Begins with Love 18 S—Service to Others 18

U—Use the Golden Rule of Selling 18 C—Communication Ability 18 C—Characteristics for the Job 18 E—Excels at Strategic Thinking 18 S—Sales Knowledge at the M.D Level 18 S—Stamina for the Challenge 18

C—Characteristics for the Job Examined 19

Caring, Joy, and Harmony 19 Patience, Kindness, and Moral Ethics 20

Faithful, Fair, Self-Controlled 20 Self-Control Involves Discipline 20

Do Success Characteristics Describe You? 22 Relationship Selling 22

Sales Jobs Are Different 23 What Does a Professional Salesperson Do? 24 Reflect Back 26

The Future for Salespeople 27 Learning Selling Skills 27 Preparing for the 21st Century 28 Ethical Megatrend Shaping Sales and Business 30 Selling Is for Large and Small Organizations 31 The Plan of This Textbook 31

Building Relationships through the Sales Process 31 Summary of Major Selling Issues 33

Key Terms for Selling 33 Sales Application Questions 33 Further Exploring the Sales World 34 Selling Experiential Exercise: Aerobic, Strength, and Flexibility Exercise Guidelines 34

CASE

1.1 What They Didn’t Teach Us in Sales Class 36 Appendix: The Golden Rule of Personal Selling as Told

by a Salesperson 38 The Golden Rule of Selling 38Others Includes Competitors 38Sales Is Your Calling to Serve 38

To Serve, You Need Knowledge 39Customers Notice Integrity 39Personal Gain Is Not Your Goal 40Others Come First 40

The Golden Rule Is Not 40Corruptible It Is Not 40 Self-Serving It Is Not 41 Comprehensive It Is Not 41 Easy to Follow It Is Not 41The Great Harvest Law of Sales 41

A Corny Example 41The Common Denominator of Sales Success 42The Fruits of the Selling Spirit 42

PART I

Preface vii

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xxii Contents

CHAPTER 2

What Is the Purpose of Business? 44

The Primary Goal of Business 44

What Is Marketing? 44

Marketing’s Definition 44

Marketing’s Not Limited to Business 45

Exchange and Transactions 45

Customer Orientation’s Evolution 45

The Production Concept 45

The Selling Concept 46

The Marketing Concept 46

Marketing’s Importance in the Firm 47

Marketing Generates Sales 48

Marketing Provides Quality Customer Service 48

Essentials of a Firm’s Marketing Effort 48

Product: It’s More Than You Think 48

Price: It’s Important to Success 49

Distribution: It Has to Be Available 50

Promotion: You Have to Tell People about It 51

Relationship Marketing 53

Relationship Marketing and the Sales Force 53

Personal Selling Builds Relationships 53

Salespeople Implement Relationship Marketing 55

Levels of Relationship Marketing 56

Partnering with Customers 56

The New Consultative Selling 57

Three Roles of Consultative Selling 57

E-Selling: Technology and Information Build

Relationships 60

What’s a Salesperson Worth? 60

The Key to Success 62

Summary of Major Selling Issues 63

Key Terms for Selling 64

Sales Application Questions 64

Further Exploring the Sales World 64

Selling Experiential Exercise: What Should Your

Children’s College Majors Be? 64

CASE

2.1 Reynolds & Reynolds 67

CHAPTER 3

Social, Ethical, and Legal Influences 71

Management’s Social Responsibilities 71

Organizational Stakeholders 72

An Organization’s Main Responsibilities 73

How to Demonstrate Social Responsibility 74

What Influences Ethical Behavior? 75 The Individual’s Role 75

The Organization’s Role 76 Are There Any Ethical Guidelines? 77 What Does the Research Say? 77 What Does One Do? 77

Is Your Conscience Reliable 77 Sources of Significant Influence 78 Three Guidelines for Making Ethical Decisions 78 Will the Golden Rule Help? 79

Management’s Ethical Responsibilities 80 What Is Ethical Behavior? 80

What Is an Ethical Dilemma? 80 Ethics in Dealing with Salespeople 81 Level of Sales Pressure 81

Decisions Affecting Territory 82

To Tell the Truth? 83 The Ill Salesperson 83 Employee Rights 83 Salespeople’s Ethics in Dealing with Their Employers 86

Misusing Company Assets 86 Moonlighting 86

Cheating 86 Affecting Other Salespeople 86 Technology Theft 86

Ethics in Dealing with Customers 87 Bribes 87

Misrepresentation 87 Price Discrimination 92 Tie-in Sales 92 Exclusive Dealership 92 Reciprocity 92

Sales Restrictions 92 The International Side of Ethics 93 Managing Sales Ethics 94

Follow the Leader 94 Leader Selection Is Important 94 Establish a Code of Ethics 94 Create Ethical Structures 95 Encourage Whistle-Blowing 95 Create an Ethical Sales Climate 95 Establish Control Systems 96 Ethics in Business and Sales 96 Helpful Hints in Making Career Decisions 96

Do Your Research! 97 The Tree of Business Life 99 Ethics Rule Business 100 Summary of Major Selling Issues 100 Key Terms for Selling 101

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Contents xxiii

Selling Experiential Exercise: Ethical Work Climates 102

CASES

3.1 Ethical Selling at Perfect Solutions: The Case of

the Delayed Product 105

3.2 Sales Hype: To Tell the Truth or Stretch It, That Is

the Question 107

Information Evaluation 131 Purchase Decision 132 Postpurchase 133 Satisfied Customers Are Easier to Sell To 134

To Buy or Not to Buy—A Choice Decision 134 Summary of Major Selling Issues 136

Key Terms for Selling 137 Sales Application Questions 137 Further Exploring the Sales World 140 Student Application Learning Exercises (SALES) 141 SALE 1 of 7—Chapter 4 141

Selling Experiential Exercise: Is Organizational Selling for You? 141

CASES

4.1 Economy Ceiling Fans, Inc 143

4.2 McDonald’s Ford Dealership 144

Remember the Trial Close 161 Empathy Puts You in Your Customer’s Shoes 161 Keep It Simple 162

Creating Mutual Trust Develops Friendship 163 Listening Clues You In 163

Your Attitude Makes the Difference 167 Proof Statements Make You Believable 167 Summary of Major Selling Issues 168 Key Terms for Selling 168

Sales Application Questions 169 Further Exploring the Sales World 170 Selling Experiential Exercise: Listening Self-Inventory 170 CASES

5.1 Skaggs Manufacturing 173

5.2 Alabama Office Supply 174

5.3 Vernex, Inc 175 Appendix: Dress for Success and to Impress for Business Professional and Business Casual Occasions! 176

PART II

Preparation for Relationship

Selling

CHAPTER 4

The Tree of Business Life: Benefits 111

Why People Buy—The Black Box Approach 111

Psychological Influences on Buying 112

Motivation to Buy Must Be There 112 Economic Needs: The Best Value for the Money 112 Awareness of Needs: Some Buyers Are Unsure 113

A FAB ulous Approach to Buyer Need Satisfaction 114

The Product’s Features: So What? 114 The Product’s Advantages: Prove It! 114 The Product’s Benefits: What’s in It for Me? 115 How to Determine Important Buying Needs—A Key to

Success 117 The Trial Close—A Great Way to Uncover Needs and

SELL 118 SELL Sequence 119

Your Buyer’s Perception 121

Perceptions, Attitudes, and Beliefs 122

Example of a Buyer’s Misperceptions 123 The Buyer’s Personality Should Be Considered 124

Self-Concept 124 Adaptive Selling Based on Buyer’s Style 125

Personality Typing 125 Adapt Your Presentation to the Buyer’s Style 125 What Is Your Style? 128

You Can Classify Buying Situations 128

Some Decisions Are Routine 129 Some Decisions Are Limited 129 Some Decisions Are Extensive 129 Technology Provides Information 130

View Buyers as Decision Makers 130

Need Arousal 131 Collection of Information 131

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xxiv Contents

CHAPTER 6

Sales Knowledge: Customers, Products,

Technologies 1 80

The Tree of Business Life: Knowledge 181

Sources of Sales Knowledge 181

Knowledge Builds Relationships 182

Knowledge Increases Confidence in Salespeople 182

and in Buyers 182

Relationships Increase Sales 183

Know Your Customers 183

Know Your Company 183

General Company Information 183

Know Your Product 184

Know Your Resellers 185

Advertising Aids Salespeople 185

Types of Advertising Differ 186

Why Spend Money on Advertising? 187

Sales Promotion Generates Sales 188

Point-of-Purchase Displays: Get Them Out There 188

Shelf Positioning Is Important to Your Success 188

Premiums 189

What’s It Worth? Pricing Your Product 189

Know Your Competition, Industry, and Economy 190

Personal Computers and Selling 192

Knowledge of Technology Enhances Sales and

Customer Service 192

Personal Productivity 193

Communications with Customers and Employer 195

Customer Order Processing and Service Support 197

Sales: Internet and the World Wide Web 198

The Internet 198

World Wide Web 198

Global Technology Provides Service 199

Speakerphones and Conference Calls 202

Selling Experiential Exercise: How Is Your

Self-Confidence? 205

Appendix: Sales Arithmetic and Pricing 208

Types of Prices 208

Discounts Lower the Price 209

Quantity Discounts: Buy More, Pay Less 209

Cash Discounts Entice the Customer to Pay on Time 209

Trade Discounts Attract Channel Members’ Attention 210 Consumer Discounts Increase Sales 210

Resellers: Markup and Profit 211 Markup and Unit Price 212 Markup and Return on Investment 212Organizations: Value and ROI 214Compare Product Costs to True Value 215 Unit Costs Break Down Price 216 Return on Investment Is Listened To 216Key Terms for Selling 216

Sales Application Questions 216Student Application Learning Exercises (SALES) 218Sale 2 of 7—Chapter 6 218

CASES

6A.1 Claire Cosmetics 220

6A.2 McBath Women’s Apparel 220

6A.3 Electric Generator Corporation 221

6A.4 Frank’s Drilling Service 222

6A.5 FruitFresh, Inc 222

The Relationship Selling Process

CHAPTER 7

The Tree of Business Life: Prospecting 227The Sales Process Has 10 Steps 228Steps before the Sales Presentation 228Prospecting—The Lifeblood of Selling 229The Leaking Bucket Customer Concept 230Where to Find Prospects 230

Planning a Prospecting Strategy 230Prospecting Methods 231

E-Prospecting on the Web 231 Cold Canvassing 232 Endless Chain Customer Referral 232 Orphaned Customers 233

Sales Lead Clubs 233 Prospect Lists 233 Getting Published 234 Public Exhibitions and Demonstrations 234 Center of Influence 235

Direct Mail 236 Telephone and Telemarketing 236 Observation 237

Networking 237

PART III

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Contents xxv

Prospecting Guidelines 238

Referrals Used in Most Prospecting Methods 239 The Prospect Pool 239

The Referral Cycle 240

The Parallel Referral Sale 240 The Secret Is to Ask Correctly 241 The Preapproach 241

The Presentation 242 Product Delivery 242 Service and Follow-Up 243 Don’t Mistreat the Referral 244 Call Reluctance Costs You Money! 244

Obtaining the Sales Interview 244

The Benefits of Appointment Making 245 Wireless E-Mail Helps You Keep in Contact and

Prospect 248 Summary of Major Selling Issues 249

Selling Experiential Exercise: Your Attitude toward

Selling 251 CASES

7.1 Canadian Equipment Corporation 253

7.2 Montreal Satellites 253

CHAPTER 8

The Tree of Business Life: Planning 255

Begin Your Plan with Purpose! 255 Plan to Achieve Your Purpose 255 What’s a Plan? 256

What Is Success? 256 Strategic Customer Sales Planning—The

Preapproach 258 Strategic Needs 259 Creative Solutions 259 Mutually Beneficial Agreements 259 The Customer Relationship Model 259 Reasons for Planning the Sales Call 260 Elements of Sales Call Planning 261 Always Have a Sales Call Objective 261 The Prospect’s Mental Steps 267

Attention 268 Interest 268 Desire 268 Conviction 268 Purchase or Action 268 Overview of the Selling Process 268

Key Terms for Selling 270 Sales Application Questions 270 Further Exploring the Sales World 271 Selling Experiential Exercise: SMART Course Objective Setting 271

Student Application Learning Exercises (SALES) 272 SALE 3 of 7—Chapter 8 273

Give a Proper Introduction 289 Establish Credibility 289 Provide an Account List 289 State Your Competitive Advantages 289 Give Quality Assurances and Qualifications 289 Cater to the Group’s Behavioral Style 289 Negotiating So Everyone Wins 291 Phases of Negotiation 292 Sales Presentations Go High-Tech 294 Select the Presentation Method, Then the Approach 294 Let’s Review before Moving On! 295

What’s Important to Know? 295 The Golden Rule Makes Sense 296 Dale Carnegie Gives a Word of Warning! 296 Summary of Major Selling Issues 297 Key Terms for Selling 298

Sales Application Questions 298 Further Exploring the Sales World 298 Selling Experiential Exercise: What Are Your Negotiation Skills? 298

CASES

9.1 Cascade Soap Company 300

9.2 A Retail Sales Presentation 301

9.3 Negotiating with a Friend 302

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xxvi Contents

CHAPTER 10

The Tree of Business Life: The Beginning 304

What Is the Approach? 305

The Right to Approach 306

The Approach—Opening the Sales Presentation 306

Your Attitude during the Approach 306

The First Impression You Make Is Critical to

Success 308

Approach Techniques and Objectives 309

Small Talk Warms ’em Up 309

The Situational Approach 309

Opening with Statements 310

Demonstration Openings 312

Opening with Questions 313

Technology in the Approach 320

Is the Approach Important? 320

Using Questions Results in Sales Success 321

The Direct Question 321

The Nondirective Question 322

The Rephrasing Question 322

The Redirect Question 322

Three Rules for Using Questions 323

Is the Prospect Still Not Listening? 324

Be Flexible in Your Approach 324

Selling Experiential Exercise: Plan Your Appearance—

It Projects Your Image! 328

Student Application Learning Exercises (SALES) 330

SALE 4 of 7—Chapter 10 330

CASES

10.1 The Thompson Company 331

10.2 The Copy Corporation 331

10.3 Electronic Office Security Corporation 332

CHAPTER 11

The Tree of Business Life: Presentation 336

The Purpose of the Presentation 336

Three Essential Steps within the Presentation 339

Remember Your FAB s! 340

The Sales Presentation Mix 340

Persuasive Communication 341

Participation Is Essential to Success 345

Proof Statements Build Believability 346

The Visual Presentation—Show and Tell 348

Visual Aids Help Tell the Story 349

Dramatization Improves Your Chances 349 George Wynn the Showman 350

Demonstrations Prove It 351

A Demonstration Checklist 352 Use Participation in Your Demonstration 352 Reasons for Using Visual Aids, Dramatics, and Demonstrations 353

Guidelines for Using Visual Aids, Dramatics, and Demonstrations 353

Technology Can Help! 354 The Sales Presentation Goal Model 354 The Ideal Presentation 355

Be Prepared for Presentation Difficulties 355 How to Handle Interruptions 355

Should You Discuss the Competition? 356 Where the Presentation Takes Place 358 Diagnose the Prospect to Determine Your Sales Presentation 358

Summary of Major Selling Issues 358 Key Terms for Selling 359

Sales Application Questions 359 Further Exploring the Sales World 360 Student Application Learning Exercises (SALES) 361 SALE 5 of 7—Chapter 11 361

The Tree of Business Life: Objections 369 Welcome Objections! 369

What Are Objections? 370 When Do Prospects Object? 370 Objections and the Sales Process 370 Basic Points to Consider in Meeting Objections 371 Plan for Objections 372

Anticipate and Forestall 372 Handle Objections as They Arise 373

Be Positive 373 Listen—Hear Them Out 373 Understand Objections 373 Six Major Categories of Objections 376 The Hidden Objection 376

The Stalling Objection 377 The No-Need Objection 379 The Money Objection 380 The Product Objection 383 The Source Objection 383

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Contents xxvii

Techniques for Meeting Objections 385

The Dodge Neither Denies, Answers, nor Ignores 385 Don’t Be Afraid to Pass Up an Objection 385 Rephrase an Objection as a Question 386 Postponing Objections Is Sometimes Necessary 387 Send It Back with the Boomerang Method 388 Ask Questions to Smoke Out Objections 389 Use Direct Denial Tactfully 392

The Indirect Denial Works 392 Compensation or Counterbalance Method 393 Let a Third Party Answer 393

Technology Can Effectively Help Respond to

Objections! 394 After Meeting the Objection—What to Do? 394

First, Use a Trial Close—Ask for Opinion 394 Move Back Into Your Presentation 395 Move to Close Your Sale 396

If You Cannot Overcome the Objection 396

In All Things Be Guided by the Golden Rule 397

Student Application Learning Exercises (SALES) 400

SALE 6 of 7—Chapter 12 400

CASES

12.1 Ace Building Supplies 402

12.2 Electric Generator Corporation (B) 402

CHAPTER 13

The Tree of Business Life: Closing 405

When Should I Pop the Question? 406

Reading Buying Signals 406

What Makes a Good Closer? 407

Ask for the Order and Be Quiet 408 Get the Order—Then Move On! 409 How Many Times Should You Close? 409

Closing under Fire 410

Difficulties with Closing 411

Essentials of Closing Sales 411

Prepare Several Closing Techniques 413

The Alternative-Choice Close Is an Old Favorite 414 The Assumptive Close 415

The Compliment Close Inflates the Ego 415 The Summary-of-Benefits Close Is Most Popular 416 The Continuous-Yes Close Generates Positive Responses 417

The Minor-Points Close Is Not Threatening 417 The T-Account or Balance-Sheet Close Was Ben Franklin’s Favorite 418

The Standing-Room-Only Close Gets Action 420 The Probability Close 420

The Negotiation Close 421 The Technology Close 421 Prepare a Multiple-Close Sequence 422 Close Based on the Situation 422 Research Reinforces These Sales Success Strategies 422 Keys to Improved Selling 426

The Business Proposition and the Close 426 Use a Visual Aid to Close 426

Closing Begins the Relationship 426 When You Do Not Make the Sale 428 Summary of Major Selling Issues 429 Key Terms for Selling 430

Sales Application Questions 430 Further Exploring the Sales World 432 Student Application Learning Exercises (SALES) 432 SALE 7 of 7—Chapter 13 433

CASES

13.1 Skaggs Omega 435 13.2 Central Hardware Supply 435 13.3 Furmanite Service Company—A Multiple-Close

Sequence 436

13.4 Steve Santana: Pressured to Close a Big Deal 437

CHAPTER 14

The Tree of Business Life: Service 440 The Importance of Service and Follow-Up 441 Words of Sales Wisdom 442

True Caring Builds Relationships and Sales 443 Building a Long-Term Business Friendship 444 What Is a Business Friendship? 444

How to Build a Business Friendship 444 What Is Most Important? 446

How Many Friends? 447 Relationship Marketing and Customer Retention 447 Relationship Marketing Builds Friendships 447 The Product and Its Service Component 447 Expectations Determine Service Quality 448 Customer Satisfaction and Retention 448 Excellent Customer Service and Satisfaction Require Technology 449

So, How Does Service Increase Your Sales? 449 Turn Follow-Up and Service into a Sale 450 Account Penetration Is a Secret to Success 451 Service Can Keep Your Customers 452 You Lose a Customer—Keep on Trucking 455 Returned Goods Make You a Hero 456 Handle Complaints Fairly 456

Is the Customer Always Right? 456

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xxviii Contents

This Customer Is Not in the Right! 456

Dress in Your Armor 457

Build a Professional Reputation 457

Do’s and Don’ts for Business Salespeople 458

The Path to Sales Success: Seek, Knock, Ask, Serve 459

Selling Experiential Exercise: What’s Your Attitude

toward Customer Service? 463

CASES

14.1 California Adhesives Corporation 465

14.2 Sport Shoe Corporation 465

14.3 Wingate Paper 466

15.2 Sally Malone’s District—Development of an

Account Segmentation Plan 491

The Experience of Being Promoted 496 Problems New Managers Experience 496 The Key to Making a Successful Transition 497 Technology Is Needed in the Job 498

Being a First-Line Sales Manager Is a Challenging Job 498

What Is the Salary for Management? 498 Overview of the Job 499

Sales Management Functions 500 Sales Force Planning 500 Sales Forecasting 501 The Sales Manager’s Budget 501 Organizing the Sales Force 502 Staffing: Having the Right People to Sell 503 People Planning 504

Employment Planning 506 The Multicultural Sales Organization 508 Recruitment—Finding the Right People 508

A Sales Manager’s View of the Recruit 509 Interview Follow-Up 512

Training the Sales Force 513 Purposes of Training 513 Training Methods 514 Where Does Training Take Place? 515 When Does Training Occur? 516 Who Is Involved in Training? 517 Summary of Major Sales Management Issues 519 Key Terms for Managing 520

Sales Application Questions 520 Further Exploring the Sales World 520 Selling Experiential Exercise: What Are Your People Skills? 521

CASE

16.1 The Wilson Company: Is a Sales Manager’s Job

Really for Me? 523

Managing Yourself, Your

Career, and Others

CHAPTER 15

Time, Territory, and Self-Management: Keys to

The Tree of Business Life: Time 471

Customers Form Sales Territories 472

Why Establish Sales Territories? 472

Why Sales Territories May Not Be Developed 473

Elements of Time and Territory Management 473

Salesperson’s Sales Quota 474

Account Analysis 474

Develop Account Objectives and Sales Quotas 477

Territory–Time Allocation 477

Return on Time Invested 478

Customer Sales Planning 481

Scheduling and Routing 481

Using the Telephone for Territorial Coverage 484

Territory and Customer Evaluation 484

Selling Experiential Exercise 488

CASES

15.1 Your Selling Day: A Time and Territory

Game 490

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Contents xxix

The Motivation Mix: Choose Your Ingredients

Carefully 527 Compensation Is More Than Money 528

Straight Salary Plans 528 Straight Commission Plans 530 Combination Plans 534 The Total Compensation Package 535

Nonfinancial Rewards Are Many 536

Leadership Is Important to Success 537

The Leader’s Task and Relationship Behavior 537 Choosing a Leadership Style 539

On-the-Job Coaching 539 Performance Evaluations Let People Know Where

They Stand 540 Performance Evaluation—What Is It? 540 Reasons for Performance Evaluation 541 Who Should Evaluate Salespeople? 541 When Should Salespeople Be Evaluated? 541 Performance Criteria 541

Quantitative Performance Criteria 541 Qualitative Performance Criteria 542 Conducting the Evaluation Session 542 Sales Managers Use Technology 545

To Manage Customers 545

To Manage Salespeople 546 Summary of Major Sales Management Issues 547

Key Terms for Managing 548

Selling Experiential Exercise: A Failure to

Communicate? 548 Sales Management Quiz 549

CASES

17.1 Baxter Surgical Supplies Incorporated 551

17.2 The Dunn Corporation 552

APPENDIX A:

Role-Play One: Consumer Sales 556

Role-Play Two: Distributor Sales 558

Role-Play Three: Business-to-Business 561

Role-Play Four: Business-to-Business 563

APPENDIX B:

Sell Yourself on a Job Interview 566

Résumé, Follow-Up Letter, E-Mail 568

How to Create a Portfolio 576 Sales Team Building 579 What’s Your Style—Senser, Intuitor, Thinker, Feeler? 579

APPENDIX C:

CASES

1 Zenith Computer Terminals, Inc.: Development

of a Total Business Plan 584

2 Wallis Office Products: Defining New Sales Roles 588

3 United Cosmetics, Inc.: Creating a Staffing Program 591

4 Mead Envelope Company—Is a New Compensation Plan Needed? 593

5 McDonald Sporting Goods Company:

Determining the Best Compensation Program 595

APPENDIX D:

Selling Globally 601 When in Rome, Do What the Romans Do 601 Customer Gift Giving in Japan 602

Respecting the Traditions of India 602 Wanted: Global Sales Managers and Salespeople 603

A Typical Sales Day in China: What to Expect 603 Little Cold Calling in Japan 604

Chinese Culture: Don’t Shy Away from Negotiating 605

Salespeople Are Making It Happen in China 606 Watch Out in Russia and China—They May Bug Your Room to Find Out Your Secrets 606

French versus American Salespeople 607 Israel—The Home Court Advantage 608 Working a Deal in the Arab World 608 The Japanese Take Relationship Selling Seriously 608

Europe and IBM—Changes Had to Be Made 609 Selling Experiential Exercise 610

APPENDIX E:

Glossary of Selling Terms 617Notes 627

Photo Credits 632Index 634

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xxx

THE ILLUSTRATED OVERVIEW OF

SELLING

Even before you begin a formal study of selling, you probably already know a few things about the subject You know, for example, that selling is about persuading others to buy your product And you may understand that it is also about helping others satisfy their needs But that is only part of what you will be studying in selling The Illustrated Overview of Selling gives you an introduction to the major concepts and issues that are part of selling:

■ Selling as a Profession

■ Preparation for Relationship Selling

■ The Relationship Selling Process

■ Managing Yourself, Your Career, and Others

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xxxi

Today’s salesperson is a professional

manager involved in building long-term

relationships with customers

An organization's marketing mix

includes its products, prices,

distribution, and promotional efforts

Personal selling is one very important

element of a firm's promotional

activities

By tailoring a presentation to

an individual customer, the salesperson can better help solve problems and satisfy needs

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xxxii

It takes expertise to sell today’s complex

goods and services Whether selling soap or

computer chips, salespeople must know their

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xxxiii

From beginning to end, the sales presentation should

be a well-planned and executed discussion of how to

help the prospect

The sales presentation is a persuasive vocal and visual explanation of a business proposition The salesperson presents the information needed for the buyer to make a well-informed decision

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xxxiv

Properly managing one’s time is essential to being successful Computers, telephones, mail, and contacting decision makers on planned intervals helps sell and service customers

Sales managers are responsible for helping

their salespeople generate sales In a joint

sales call, a manager provides valuable

on-the-job training that can help the sales

rep improve selling skills

You are your company’s representative

Customers rely on you to provide updated information and suggestions on how to solve their problems, and service Your employer relies on you to generate sales As a salesperson you are involved in a highly honorable,

challenging, rewarding, and professional career

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Confirming Pages

Fundamentals of Selling

Customers for Life Through Service

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T O

BJECTIONS

SA

ES KN

W

LEDGE

EGAL

PR

SH

IP, EVALU

ATIO

N

SL

RAC

E

TA

IO

N

SLS MANG

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A central theme of your book involves how sales personnel analyze needs of the customers, present benefits, gain commitment for purchase, and provide service after the sale The sales firm provides the product to sell, sets price, determines how the customer can receive the product, and promotes the product All of the activities must take into consideration the many social, ethical, and legal issues that affect how the organization operates

As you study the three chapters in Part 1, continually refer back to the exhibit It will help you remember each chapter’s core contents and their relationships.

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Tài liệu tham khảo	Loại	Chi tiết
1. Distinguish yourself from the competition	Khác
2. Turn the interview into an offer	Khác
3. Increase the salary offer by impressing the interviewer	Khác
4. Offer tangible proof of your abilities	Khác
5. Potentially help you get promoted	Khác
6. Help you fi nd the position that is right for you	Khác